According to MSN Money the average of 24 analysts put the 2006 EPS at $8.78. With a closing price of $404.34, this gives GOOG a forward P/E of 46.

Compared to it's nearest competition, Yahoo, Google is a "value." 26 analysts place Yahoo's 2006 EPS at $0.64. Today it closed at $32.10, giving it a forward PE of over 50.

From my research, the "historic norm" of the S&P 500 P/E ratio is 15.17. During the dot bomb bubble, it got up into the 40's.

I think both Yahoo and Google show more promise than the average tech company. Both are big names, and are "The Internet" to most people. However, I have concerns about long term revenue growth for both companies. For example, adsense is already almost everywhere. I don't think there is as much room to expand as the analysts predict.

Anyhow, I think a "fair" PE ratio for both companies is ~25. This puts the forward price on Google at $219.50 and Yahoo at $16. This is before Google sells an additional 5.3 million shares, diluting the value even further. During the next correction, investors in these modern dot bombs are going to be in for a hell of a surprise.